Infosys BPO is taking a bold and important step in its expansion in Latin America by opening a new delivery center in San Jose, Costa Rica, sources have confirmed to Nearshore Americas. Fully operational by Jan 2013, the new delivery center will provide BPO services for one of the world’s largest consumer packaged goods companies.

When asked about the new center following press reports in India-based business media, Humberto Andrade, Infosys Geo Head of Latin America confirmed that the new operation is going to be a reality next year.

High Growth Expectations

Infosys is entering Costa Rica primarily through the BPO door. Over the long run the plan appears to be to offer higher-end IT functions, but this first wave appears to be driven around the specific needs of their client in the area of procurement and F&A services. That demand is expected to increase, prompting more hires and stronger growth in Costa Rica. In terms of numbers, sources say Infosys will start with 150 employees out of the gate.

It is believed that Infosys will positio Costa Rica as a strategic location in its Latin America footprint – which also includes centers in Monterrey, Mexico and Belo Horizonte.

“Even though it’s a small country, the quality of universities and the number of students they graduate is high,” Andrade noted. “It’s enough talent to fulfill the growth expectations we have.”

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Investment Climate: Security

It is widely known within Nearshore circles that Infosys was looking very closely at Colombia to open a new center. It is not entirely clear why Costa Rica won out.

The new center is planned to be housed in the Forum 2 Free Trade Zone. Located less than an hour from San Jose, the business campus offers customizable and finished office solutions that greatly cut the time required to become operational.

The downside of Costa Rica – compared to other nearby countries such as Honduras or Guatemala – is that it could be pricy, especially for BPO wage rates. Monthly starting salaries could be anywhere from $1000 to $2000 per month, and increase substantially thereafter.

Where Next?

Infosys reportedly considered Chile, Colombia, Nicaragua, Guatemala and some Mexican cities while making its decision. Clearly, however Costa Rica was seen as the ‘safest’ bet for the kind of US-centric clients the firm is likely to court.